---
kind: "section"
citation: "31 C.F.R. § 566.404"
title: "31"
number: "566.404"
heading: "Significant transactions; significant financial services."
url: "https://uscodex.org/cfr/31/566.404"
---

# §566.404. Significant transactions; significant financial services.


In determining, for purposes of [paragraph (a)](/cfr/31/566.201.md?p=a) of § 566.201, whether a transaction(s) or financial service(s) is significant, the Secretary of the Treasury may consider the totality of the facts and circumstances. As a general matter, the Secretary may consider some or all of the following factors:

- (a) **Size, number, and frequency.** The size, number, and frequency of transaction(s) or financial service(s) performed over a period of time, including whether the transaction(s) or financial service(s) is increasing or decreasing over time and the rate of increase or decrease.
- (b) **Nature.** The nature of the transaction(s) or financial service(s), including the type, complexity, and commercial purpose of the transaction(s) or financial service(s).
- (c) **Level of awareness; pattern of conduct.**
  - (1) Whether the transaction(s) or financial service(s) is performed with the involvement or approval of management or only by clerical personnel; and
  - (2) Whether the transaction(s) or financial service(s) is part of a pattern of conduct or the result of a business development strategy.
- (d) **Nexus.** The proximity between the foreign financial institution engaging in the transaction(s) or providing the financial service(s) and Hizballah or a blocked person described in [paragraph (a)(2)](/cfr/31/566.201.md?p=a-2) of § 566.201. For example, a transaction or financial service in which a foreign financial institution provides brokerage or clearing services to, or maintains an account or makes payments for, Hizballah or such a blocked person generally would be of greater significance than a transaction or financial service a foreign financial institution conducts for or provides to Hizballah or such a blocked person indirectly or in a tertiary relationship.
- (e) **Impact.** The impact of the transaction(s) or financial service(s) on the objectives of the Hizballah International Financing Prevention Act of 2015, including:
  - (1) The economic or other benefit conferred or attempted to be conferred on Hizballah or a blocked person described in [paragraph (a)(2)](/cfr/31/566.201.md?p=a-2) of § 566.201; and
  - (2) Whether and how the transaction(s) or financial service(s) contributes to support for international terrorism.
- (f) **Deceptive practices.** Whether the transaction(s) or financial service(s) involves an attempt to obscure or conceal the actual parties or true nature of the transaction(s) or financial service(s) to evade sanctions.
- (g) **Other relevant factors.** Such other factors that the Secretary deems relevant on a case-by-case basis in determining the significance of a transaction(s) or financial service(s).

## Notes

### Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890, as amended (28 U.S.C. 2461 note); Pub. L. 114-102, 129 Stat. 2205 (50 U.S.C. 1701 note); Pub. L. 115-272, 132 Stat. 4144 (50 U.S.C. 1701 note).

### Source

Source: 81 FR 22186, Apr. 15, 2016, unless otherwise noted.